The average price of a UK property coming to market has climbed to £371,870 in March, in a busy month that’s seen a huge log-jam as home-seekers try to beat the upcoming stamp duty deadline.
The average asking price for properties hitting the market this month has increased by 1.1%, or £3,876, according to Rightmove (RMV.L).
According to the property site’s data, February and March have historically been the best months for sellers to list their properties, with a higher proportion of homes sold in these months compared to others.
However, this year, new sellers will face stiff competition, as the number of homes being listed has reached a decade-high. At the same time, buyers entering the market are presented with the best selection of properties since 2015. This had led many sellers to price “sensibly” amid intense competition.
Colleen Babcock, a property expert at Rightmove, said: “Those who are successfully finding buyers right now are working hard with their agents to price competitively and present their home in the best possible light.
“The big milestone ahead in England is the stamp duty deadline, and with a massive log-jam of 575,000 moves going through the legal completion process, many cost-conscious buyers will be doing all they can to get their move over the line and avoid unnecessary extra tax.
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“Whilst agents tell us that they have been working with both sellers and buyers to factor in the additional charges, many movers are understandably hoping to reduce their tax bill and keep their savings for themselves.”
The 575,000 homes currently going through the legal completion process make up a significant portion of Rightmove’s projected 1.15 million transactions for 2025. Many of these moves are being rushed to meet the stamp duty deadline on March 31.
Rightmove’s stamp duty report reveals that an estimated 74,000 moves, including 25,000 first-time buyers, will miss the deadline and complete in April instead — incurring a collective £142m in extra tax.
From 1 April, the “nil rate” band for first-time buyers will come down from £425,000 to £300,000, while for other homebuyers it will fall from £250,000 to £125,000. It means half of homeowners will have to pay an extra £2,500 per purchase, while another third will pay up to this level.
As the deadline approaches, hopes for an extension are dwindling, but with the spring statement coming just before the cut-off, there remains a slim chance that the government could announce a short extension to help those caught by delays.
Sales agreed are up 9% compared to the same time in 2024, and the number of new sellers is 8% higher than last year — indicating continued market dynamism ahead of the stamp duty changes in April.
However, persistently high mortgage rates are dampening some of the market optimism. Rightmove’s weekly mortgage tracker shows that the average five-year fixed mortgage rate is now 4.74%, down from a peak of 6.11% in July 2023, but only marginally lower than the 4.84% at this time last year.
Matt Smith, a mortgage expert at Rightmove, said: “We’re still seeing lenders price competitively where they can to secure mortgage business at this typically busy time of year.
“However, the economic turbulence happening globally is impacting mortgage rates, and we’re seeing some small rate fluctuations on a week-by-week basis. Most affected are rates for those with the smallest deposits, which is a double whammy for first-time buyers and those who need to borrow more.
“We’ve got the next interest rate decision coming up from the Bank of England, and the current expectation is that we’ll see a hold, followed by a cut in May.
“However, we’ve already seen this year how quickly things can change, so a lot will depend on other economic news we have between the two Bank of England meetings.”
Read more: UK house prices expected to rise as buyer demand slows ahead of stamp duty increases
For many sellers, realistic pricing remains key. Sarah Bush, head of Residential Sales and Lettings at Cheffins, said: “The year has gotten off to a good start, with a marked increase in the number of homes coming to the market in comparison to last year.
“Despite the wider economic outlook appearing to hold some uncertainty, the message we have received from sellers is that they are tired of sitting on the fence and really want to get on with moving this year.
“Realistic pricing is key when it comes to the current market, and particularly in countryside locations, price sensitivity is still prevalent. The most testing part of the market is the upper end, where realistic pricing is particularly important.
“This is where sellers need to be mindful of not overpricing if they are looking for a successful sale.”
Looking ahead, Chris Rosindale, chief operating officer at Connells Group, noted: “The beginning of this year has seen overall growth in the sales market, with more sellers bringing their homes to market.
“Some stability in interest rates and modest house price growth have certainly helped to increase confidence from both buyers and sellers, and overall attitudes towards moving home are positive. Pricing is still key and setting realistic asking prices is vital to achieving the best sale.”
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